Global Insights on Succeeding in the Customer Experience Era

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.1

March 2013

Michel Van Woudenberg,Vice President, CRM, Asia Pacific@macwoody

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Global Insights on Succeeding in the Customer Experience Era


WEB

CONTACTCENTER

IN-STORE

CATALOG

MOBILE

EMAIL

SOCIAL

NEED /RESEARCH

SELECT PURCHASEMAINTAIN /

RECOMMENDRECEIVE /

USE

Your Customers Are Buying Like This….

Read Reviews

Comparison Site

Web Search

Ask Facebook FriendsFor Recommendations

Visit Retail Store

Chat

Email Order Confirm w/Rec

Pickup Local Store

Tweet AboutPurchase Experience

Ask for Help onCommunity Chat Room

Product Info

Order Online

Kiosk

Change Order

Select Product

BrowseCatalog

Order Online

Call for Info about Add-on Accessories


But You Are Probably Organized More Like This

Social

Pricing

Offers

Products

Orders

Customers

Pricing

Offers

Products

Orders

Customers

Pricing

Offers

Orders

Customers

Pricing

Offers

Products

Orders

Customers

Pricing

Offers

Products

Orders

Customers

Pricing

Offers

Products

Orders

Customers

Web Mobile

Products

Direct Call CenterStore


So Your Customer Looks Like This….

You.com

Mobile

Social

Shops

Call Center

Sales Reps “Can’t your sales peoplesee my web inquiries ? The other guys always

understand all my issues.”

“Wouldn’t it be nice if you rewarded me for all the

customers I have referred and the positive tweets I send ?”

“Why did you send me an email for this product

knowing I have it already ??”

“When I clicked the “Chat Now” the agent

had no idea of what I was looking at or who I was

“Why can’t I find a installer that has

experience for this product ?”

“When I go online, I can’t easily find what I need. It’s too complicated to

find what’s best for me.”


But Twitter is not the answer…


Facebook is not the answer…


Blogs, Wikis, Youtube, Tumblr etc are not the answer…


None Of These Are Guaranteed To…


O’Keeffe & Company – an independent market research firm – worked on behalf of Oracle to conduct online interviews with 1,342 global senior executives in August and September of 2012. The sample size results in a margin of error of ±2.58% at a 95% confidence level

Methodology

Company Business Model: Business to business: 21% Business to consumer: 31% Business to business to consumer: 16% Business to business and business to consumer: 32%

Company Revenue:

Less than $50M: 11% $50M-$249M: 19% $250M-$499M: 13% $500M-$749M: 15%

Respondent Title: Chief Customer Officer/Customer Experience

Officer/VP of Customer/Brand Experience: 18% CEO/COO/President: 28% CIO/CTO: 21% VP of Customer Service/senior-level customer

support executive: 13% CMO/VP of Marketing/senior-level marketing

executive: 11% VP/senior-level executive Commerce/eCommerce,

Web Experience, or In-Store Experience: 9%

$750M-$999M: 16% $1B-$9.999B: 16% $10B or more: 10%

Sample Demographics


Sample Demographics

The survey sample includes organizations from a wide variety of industries in North America, Latin America, Europe, and Asia Pacific

Methodology

Company Industry: Consumer Electronics/Technology Consumer Products Distribution Financial Services Healthcare Insurance Life Sciences Media/Entertainment Retail

Company Region: North America: 300 respondents

- Includes: Canada and United States Latin America: 253 respondents

- Includes: Argentina, Brazil, Chile, and Mexico Europe: 325 respondents

- Includes: France, Germany, Italy, the Netherlands, Spain, and United Kingdom

Asia Pacific: 464 respondents- Includes: Australia, China, India, Japan,

Singapore, and South Korea

Telecommunications Travel Utilities Multiple Industries

(Organizations that operate in more than one of the industries listed)


Rising expectations from customers (59%) and the impact of social media on customers’ ability to broadcast good and bad experiences (37%) are the top two drivers for organizations’ focus on customer experience2

CX: Global Strategic Priority with Huge Financial Stakes

1Those who somewhat or strongly agree 2Respondents asked to select top three

20%

Executives estimate that their potential revenue loss for not offering a positive, consistent, and brand-relevant customer experience is 20% of their annual revenue, or $400M for a $2B firm

of executives state that improving the customer experience is one of their organization’s top three priorities in the next two years

of executives believe that delivering a great customer experience is critical to their business advantage and results1

93% 97%

CX Can Make or Break a BusinessTAKE AWAY


The Execution Gap: Businesses Are Stuck in Idle

Businesses Must Act to Avoid Falling BehindTAKE AWAY

1Those who somewhat or strongly agree 2e.g., established dedicated customer experience leaders, optimizing initial projects, extending program to new channels

91% wish to be considered

a CX leader in their industry1

Yet …Nearly all businesses

37% are just getting

started with a formalCX initiative

20% Consider their CX

initiative “advanced”2

And only …


The Perception Gap: Businesses and Customers Are Worlds Apart

1Those who strongly agree 2According to The 2011 U.S. Customer Experience Impact (CEI) Report by RightNow (acquired by Oracle in March 2012)

49% 89% But …

44% 86% While…

of execs believe customers will switch brands

due to poor CX1

of customers say they have switched

because of poor CX2

of execs believe customers are

willing to pay for great CX1

of customers say they are already

doing so2

Executives Underestimate The Risk and OpportunityTAKE AWAY


Social Media: A Key Driver for the Future

1Those who strongly or somewhat agree

81% believe that delivering a great customer experience today requires leveraging social media effectively1

But …

…a significant number of organizations don’t seem to fully understand the importance of social media:

35% DON’T have social media for sales channels

35% DON’T have social media for customer service

Catch up with Social ExpectationsTAKE AWAY


Fewer than half of respondents said the following were top areas of success:1

In the research and buying process: After customers purchase products/services:

Personalizing communications with relevant offers/information based on customer segments/preferences (49%)

Enabling customers to start a purchase transaction in one channel and seamlessly continue the transaction in another (35%)

Providing agents with real-time visibility into a customer's current shopping cart and recent behavior on the web or mobile (26%)

Empowering customers to help themselves on any channel (41%)

Providing service and support through mobile and tablet devices (39%)

Integrating social media with services processes (35%)

Capturing/maintaining a single view of customer behavior, interactions, product, and services transactions to understand customer needs, patterns, and preferences (28%)

1Respondents asked to select top five areas

Businesses Fall Short on Delivering the Experiences Customers Want

Room for Improvement in Customer EngagementTAKE AWAY


People & Processes

Tech, People, and Processes Present Obstacles

1Respondents asked to select top three

Some of the biggest CX obstacles are:1

Investments

27%27%

Technology

29%Limitations of

inflexible technology and

application infrastructure

24%Difficulty regularly

tracking performance

measures and customer feedback

23%Don't have a consolidated, accurate, 360-

degree customer view across all

touch points

18%Siloed systems that

prevent us from easily sharing information or supporting continuous

processes across touch points

Siloed organizations/ conflicting key

performance indicators (KPIs)/incentives between

different channels/ business units

Lack of money

allocated to customer

experience initiatives

Breakdown Organizational Silos and Address CX from All AnglesTAKE AWAY


Big Data and Analytics Meet CX

Businesses Invest to Cross the CX GapsTAKE AWAY

1Respondents asked to select the top priority of their organization’s CX program over the next 12 months 2Respondents asked to select all the technologies their organization plans to invest in within the next two years

On average, businesses

estimate they will increase

spending on customer

experience tech

by 18% in the next two years

Knowledge management: 25% Online self-service: 24% Mobile apps: 25% Click-to-chat option online: 21%

Improving the online customer support experience18%

eCommerce: 25% Mobile apps: 25% Web experience management: 25%

Improving the online customer purchase experience

17%

BI and customer analytics solutions: 31% Integrated customer view across channels: 29%

Improving the cross-channel experience22%

Top Priorities:1 Planned Investments:2


Customer feedback methods used: Traditional marketing methods and indirect measurements used:

Customer satisfaction

(CSAT) scores

Customer effort score

Customer experience

index

Net promoter

score

Brand awareness

Customer churn rate

Market share

Customeradvocacy

Average revenue per user

Increase in registered

users

Executives Are Missing the Mark on Measurements of Success

Industry Consensus May Offer Valuable Comparisons, InsightTAKE AWAY

1Respondents asked to select all that apply

THE AVERAGE BUSINESS USES FOUR MEASURES OF CUSTOMER EXPERIENCE

How do you measure customer experience?1


Lessons Learned: CX Success Requires Fundamental Changes

1Respondents asked to select top three 2According to all respondents

Of those firms that consider their CX initiative “advanced”, the most successful projects are:1

Building a training

program and incentives for employees to offer a great experience (35%)

#1

What’s next?

Today only 3% say customer journey mapping (an emerging best practice to evaluate and redesign improved customer experiences) is one of their top three most successful CX projects2

Updating company core values to include the need to provide the most appropriate customer experience to all our customers (32%)

#2 Implementing a specific

technology to improve customer service (29%)

#3

CX Requires A Shift In Approach To Solving Business ProblemsTAKE AWAY


27%

Industries at a GlanceConsumer

Electronics/Technology

Consumer Products Distribution

Financial Services Insurance

Potential revenue loss/opportunitycost

25% 22% 23% 18% 19% 14%

Estimated growth in spending on CX tech in the next two years

26% 19% 18% 16% 16% 14%

Percent that have advanced CX programs in place

20%22%16% 13%23%

Healthcare


37%

Industries at a Glance

Life Sciences

Media/ Entertainment Retail Telecom Utilities

Potential revenue loss/opportunitycost

15% 27% 17% 20% 23% 16%


16% 15% 16% 18% 15% 15%


14%15%29% 16%14%

TravelMultiple

Industries

20%

18%

20%


Regions at a Glance

North America

Latin America

Europe Asia Pacific

Potential revenue loss/opportunity cost 21% 22% 18% 20%


13% 25% 15% 19%


20%29% 16%19%


WORLD’S LEADING BRANDS INVESTED IN ORACLE CX

Siebel RTD ATG Endeca Inquira Fatwire CI


Our Take…Don’t WaitKnow your Customers – or Lose them

Empower Your Customer and Organization

Adapt Your Approach

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Global Insights on Succeeding in the Customer Experience Era

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